Posted on 19 Apr 2024
Suppliers have sharply hiked export offers for wire rod and rebar in East Asia, Kallanish notes. With the continued surge in Chinese steel futures, market sentiment is improving in the region despite continued uncertainties relating to finished steel demand weakness and oversupply of steel.
Malaysian theoretical-weight rebar for May or June shipment is offered at around $530/tonne trucked to Singapore, equivalent to $520-525/t cfr Singapore. This is $10t higher from last week.
Market sentiment is definitely better, although real demand has not improved, a Singapore importer says. "Customers are expecting prices to go up on the back of the uncertain geopolitical environment and rising tension in the Middle East," he says. Some domestic buying recently took place because of this. He heard that the Malaysian mill concluded some theoretical weight rebar deals at around $517-518/t delivered last week before the market rebounded.
Kallanish assessed BS4449 500B 10-40mm diameter rebar at $515-520/t cfr Singapore theoretical weight, up $5 week-on-week.
In Hong Kong, actual weight rebar from the Malaysian mill, for June/July shipment is offered and bought at $530/t cfr. Someone booked at $530, says a Hong Kong buyer but he is unsure of the quantity. He personally has no need for imported rebar for now. "Maybe there are serious buyers now because Chinese prices are finally on the way up," he says.
Wire rod offers for Chinese 6.5mm up diameter SAE 1008 wire rod are prevailing at around $525/tonne cfr Manila and $515/t cfr Vietnam for end-May/June shipment, up by $15 on-week. The low-priced offers are believed to be for wire rod cargoes shipped out with little or no Chinese VAT payment.
No deals are heard to have concluded in Manila at these hiked levels. Last bookings took place previously at $505/t cfr Manila early in the week of 12 April. More than 10,000t were booked then, trading sources in Manila estimate.
Kallanish assesses SAE 1008 6.5mm-diameter wire rod at $515/t cfr Manila, up $10 on-week.
A leading Indonesian mill has raised the export offer price for wire rod to $520/t fob, up from $510/t fob last week. Freight from Indonesia would be around $15-20 depending on ASEAN export destination. Wire rod from Chinese mills which are VAT-compliant are as high $540/t fob, up from $520-530/t fob last week.
Source:Kallanish
